That's because businesses will have to lay off employees to cover the higher cost of paying their remaining employees.

"Republicans in Congress oppose raising the minimum wage. Now I don't know if that's just because I proposed it," Obama said, drawing laughter from the largely supportive crowd. "Maybe I should say I oppose raising the minimum wage, and they'd vote for it."

House Speaker John Boehner's office responded by releasing a parody "fact sheet" in the style typically used by the White House to outline Obama's proposals. The headline: "President Obama Offers Plan to Destroy Jobs for Low-Income Americans."

"When folks are still struggling to find work in this economy, why would we make that any harder?" Boehner's spokesman Brendan Buck challenged.